Securities Code: 8929

Full-year Business Summary
for Fiscal Year 2019(29th period)
January 1 to December 31, 2019

To Our Shareholders

Highlights of Consolidated Business Results

In the fiscal year 2019 (29th period), we broke through¥5,000 million for the first time with revenue from property
consulting at ¥5,564 million, supported by expanding
consulting needs in the areas of property succession andbusiness succession. Furthermore, supported by robust
property management needs and favorable market
conditions, we were able to record revenue from real estatetransactions of ¥13,496 million, which came close to ourhighest revenue amount of ¥13,528 million recorded in2007. As a result, we were able to break our previous
record high for net sales in the fiscal year 2019 with
¥19,061 million, up 10.6% year on year.
Operating profit, ordinary profit and profit all continued toincrease, and together with net sales, we were able toachieve increases both in revenue and profit for seven fiscal
years in a row. Furthermore, we were able to break ourprevious record high for profit with ¥1,676 million, up
44.2% year on year.
We have been able to increase dividends for nine fiscal
years in a row, and fortunately we were able to make agood start in 2019, which is the first year of the Second
Medium-term Management Plan announced last year.
This plan lasts three years starting from 2019, and sets thetime period to prepare and reform responses to property
and business succession needs associated with the rapidly
decreasing birthrate and aging population in the future, andto management needs to extend the life expectancy ofassets due to the increase in longevity. The plan aims for
growth of the Company in line with the following five basic
policies, and we believe carrying out this plan will lead to
growth expansion for the Company in the future.
Currently, due to apprehension of the spread of theinfectious disease caused by a novel coronavirus (2019nCoV), economic activity around the world, including inJapan, is shrinking greatly, which is bringing about a large

We were able to record our highest net sales and profit attributable to owners of parent since establishment due to selling a
portion of held investment securities and the recording of extraordinary income in addition to stable revenue from property
consulting as a result of an increase in customers caused by rising property consulting needs.
The entire Group is devoting its full attention and working together to respond to the rising consulting needs in the areas ofproperty succession, business succession and property management for individual asset holders and corporate owners.

Five Basic Policies
1. Technology fortification initiative
2. Tie-up expansion
3. ‌S upport the expanding and diversifying needs ofproperty and business successions
4. Support expanding management needs
5. ‌Initiative to improve human resources and employee
satisfaction
1

President

Masazumi Hasumi

Net sales

Operating profit

19,061 million yen

1,603 million yen(Up 10.6% year-on-year)

profit per share(Up 9.4% year-on-year(unit: million yen)(unit: million yen)

22,000decrease in assets. In order to respond to the risk of further
economic downturn, measures for monetary easing havestarted to be taken, but the situation is extremely uncertain
as there may be an increase in credit risk due to a
weakened economy.
Management is becoming more and more difficult forpeople who hold assets, and the need to prepare for therisk of decreases in the value of property held is rising.
Furthermore, corporate owners also face the necessity tocarry out the succession of business before its performance
worsens. As such, day after day we feel that the wave ofneeds for property succession, business succession andproperty management is expanding without subsiding eventemporarily.
Guaranteeing the safety of our employees and customers is
our highest priority, and in addition to employees
thoroughly washing their hands, disinfecting and wearing
masks, we are working to increase immunity with sufficient
sleep and a moderate amount of exercise. We are also
working to prevent the spread with precautions such as
staggered working hours and giving special leave to those
who start to feel unwell.
Lastly, we express our appreciation to our shareholders fortheir day to day support.
In these trying times, we ask that you take sufficient care ofyour health and physical condition, and continue to give us
your support.

17,227

Fiscal Year 2018
(28th period)

Fiscal Year 2019(29th period)(unit: yen)

140.001,800(forecast)

19,061)140.00 yen

1,603

1,464

Fiscal Year 2020
(30th period)

Fiscal Year 2018
(28th period)(forecast)Fiscal Year 2019(29th period)

Fiscal Year 2020
(30th period)

99.06

101.88

Fiscal Year 2018
(28th period)(forecast)Fiscal Year 2019(29th period)

Fiscal Year 2020
(30th period)

Consolidated Financial Highlights
Consolidated Balance Sheet (Summary)(unit: million yen)

1 Total assets 15,492

Total assets 12,353
Cash and deposits

4,197

4,951

8,494

(D/E ratio 1.10 times)

Real estate for sale

4,052

Other liabilities

2,884

Other assets

4,104Interest-bearing liabilities

2 Interest-bearing liabilities

Cash and deposits

Net assets

4,518(Equity ratio 36.5%)

End of 2018

5,734

(D/E ratio 0.91 times)
Other liabilities

3,367

Real estate for sale 1,145
Real estate for rent

Total assets amounted to ¥15,492 million, up ¥3,138
million from the end of the previous period due to anincrease in cash and deposits.
2 Interest-bearing liabilities

Interest-bearing liabilities amounted to ¥5,734 million,up ¥783 million from the end of the previous period
due to an increase in long-term loans payable.
3 Net assets

2,571

3 Net assets

Other assets(Equity ratio 40.6%)

3,281

1 Total assets

End of 2019

6,390

Net assets grew by ¥1,871 million from the end of theprevious period to reach ¥6,390 million due todisposal of treasur y shares and an increase inretained earnings.
2

Topics for fiscal year 2019

The second regional revitalization project

Property measures to prepare for dementia
Commencement of “Korobanu saki no tsue® (prevention
is better than cure) consulting service”
In order for us to address customers’ problems that could not be solved withjust a will or the adult guardianship system, we have prepared “Korobanu sakino tsue (prevention is better than cure) consulting service,” which is aconsulting service that uses a civil trust that securely administers property
even in the event of the onset of dementia*.
If one develops dementia, it is possible that they will not be able to express
their intentions, and there will be a variety of problems regarding property
management such as carrying out inheritance contracts becoming difficult.
We provide a consulting service that helps customers feel at ease by offering
support for the preparation of the “civil trust contract,” “voluntary
guardianship contract” and “will related to trust assets,” so that the trustor (theperson in question) can easily prepare a trust contract that prepares for thedevelopment of dementia while they have the ability to make decisions, andthat the trustee (successor) can administer, manage and dispose of property
based on the details of the trust contract.

Difficulties with dementia

1 ‌Expression of intention of the person in question(Example) Start while they have the ability to make decisions
2 ‌Timing set by the trustor(Example) A 70-year old trustor sets turning 80 as timing.
3 Upon being diagnosed with dementia*

Difficult todispose of realestate byselling

Structure of “Korobanu saki no tsue®
(prevention is better than cure) consulting service”
Finance

Father(Trustor)

Timing of commencement of the trust

Difficult tocarry out
inheritancecontracts

Difficult towithdraw
money

Real
estateAdministrated by thetrustor while they havethe ability to makedecisions, butadministration is left tothe trustee in the worst
case.

The consultant will
support therealization of a trustthat prepares for the
worst case scenarioChildand give(Trustee) management advice.

For example, the parent (trustor) wishes that if he or she isdiagnosed with dementia, administration of real estate will becompletely entrusted to the child (trustee), or the child (trustee)c a n p u r c h a s e r e a l e s t a te a t th e i r ow n di s c r e ti o n a s a ninheritance measure. In this case, the implementation will be
carried out based on the details agreed upon.

* Diagnosed with dementia to the degree that intentions cannot be expressed

Holding of seminars on “coping with dementia” in progressPresident Masazumi Hasumi giving a lecture

3

The “seminar on coping with dementia” took place four times starting from
August for customers of partner companies. Nobuo Otsuka, the founder of
Oume Keiyu Hospital who mainly receives late-stage patients and has
encountered many people with dementia, and our representative Hasumi
were the lecturers for the first seminar. They spoke about “preparing fordementia,” which is a social issue in an aging society, from the perspectivesof daily life and property administration. It is necessary to make preparationsin advance to personally administer and manage one’s own property of one’s
own accord, as dementia is an inevitable issue as one becomes aged.
However, as it is not possible to respond well by simply making use of one ofJapan’s current systems, the importance of combining and employing thosesystems was explained in concrete terms.
Going forward, we plan to strengthen collaboration with partner companies,
and actively hold seminars that involve experts.

Obtained preferential negotiation rights in relation to “Tsuruga
Station Western District Land Usage Enterprise” in Fukui Prefecture
In the public offering to the private business operators of “Tsuruga Station Western
District Land Usage Enterprise” implemented by Tsuruga City, we made a businessproposal as a group, which was represented by the Company and comprised theCompany and the hotel business operator HiF Resort Inc. (Komatsu City, Ishikawa
Prefecture), and obtained preferential negotiation rights.
In the proposal, we have suggested a facility that will be a bustling hub withinteraction between residents and visitors ahead of the opening of the Hokuriku
Shinkansen Tsuruga Station in the spring of 2023. As the Company’s second
regional revitalization project*, we have executed a basic agreement with Tsuruga
City in late January 2019 and plan to commence operations of the proposed facility
in 2022.

The first regional revitalization project

Komatsu City,
Ishikawa Prefecture
The second regional revitalization projectTsuruga City,
Fukui Prefecture* A regional revitalization enterprise through the scheme of Real Estate Specified Joint Enterprise utilizing a Special Purpose Corporation

Businessoverview

Proposedfacilities

Hotel that can take care of business customers, foreigners visiting Japan and tourists
Shopping complex with stores and restaurantsthat carry Tsuruga’s specialties and souvenirs
Child care support facility
Intellectual training & education (public) facility, etc.
Proposal by the corporate group with its
representative being MARUZENYUSHODO Company, Limited, which wasselected as the designer and business
operator of the intellectual training &education (public) facility, that incorporates
a book store with an attached café.
Source: MARUZEN-YUSHODO Company,
LimitedTsuruga Station
Western District Land
Usage Enterprise(conceptual image)
Whole area
seamlessly outfittedwith park filled withgreenery and covered
promenadeTechnology fortification initiative
New system to provide high-quality consulting in development
Amid the number of employees increasing yearly, we are currently developing a new system to bereleased in 2020 for making high-quality proposals regardless of the level of experience of theconsultant.
We are systematizing the know-how of our ace consultants in the fields of real estate utilization,business succession and inheritance measures, which was accumulated over 30 years, such as
know-how in the extraction and analysis of issues, task setting, choice of solution methodology, etc.
With the new system, if the results of the hearing, etc. are entered into the system, the analysis
results for the problem and choices for measures to remedy the problem will automatically bepresented. By systematizing that which was previously a manual procedure, we will rapidly increase
the speed that issues are solved in addition to guaranteeing quality that is above a certain levelfrom all of our consultants.
In addition, by utilizing technology, we will significantly shorten the process from basic analysis of
issues to delivery of proposals at a certain level of high quality, and using the time saved, we willtake time to collect the desires and preferences of our customers and provide high-quality services
that are carefully customized to each customer.

Merits due to the application of technology (provisional)
Possibility of making high-quality proposals that are above a certain level of quality regardless of
the level of experience of the consultant
Rapid increase in the speed that issues are solved

Analysis results from five perspectivesof business/property succession
Smooth successionof management
Preparation
for theunexpected

Smoothsuccessionof property

Management andSecuring tax
maintenance of property payment funds
Analysis results from five perspectives based on family information,
corporate information, property data, hearing results, etc.

4

SDGs of
Aoyama Zaisan
Initiative to improve humanresources and employee
satisfaction

The Group sets its management philosophy based on the spirit of altruism, and in order to put this management philosophy
into practice, the nature of our management is to improve the personality of our human resources and grow as a company
that can contribute to the joy of our customers, help many people, and assist in contributing to society.
As initiatives to improve our human resources, we are holding participatory training courses for all employees and training
courses separated by position regarding our management philosophy every month. We have also revised our Code of
Conduct to instill our management philosophy into our employees well enough for them to conduct themselves based on
this philosophy. As initiatives to improve our employee satisfaction, we have introduced an open plan office layout andhousing allowance with the aim of reducing the burden of commuting, and the results of these environmental improvementsthat make it easier to work and allow a variety of personnel to be active have led to increased recruitment numbers andincreased employee retention.
The way that we think about SDGs is consistent with our management philosophy. We believe that we will be able to achieve
our SDG targets by enhancing our management philosophy and instilling it into each and every one of our employees.

Supported the establishment of welfare facilities for the elderly
Solved the issue of unoccupied houses and vacant landParticipated in renovation projects for overseas real estate andurban development projects
Renovated second-hand office buildings by performing
seismic reinforcement work

Acted to support the establishment of a foundation with the main goalof supporting scholarships
Participated in urban development projectin Indonesia

Recruited employees regardless of nationality
Supported the establishment of a foundation tocontribute to the promotion of Myanmar’ s culture

Supported the establishment of licensed nurseryschools to resolve the problem of children on waiting lists
Supported the establishment of welfare facilities for the elderly
Periodically held seminars regarding dementia

Guaranteed business continuation and growth inaddition to employment opportunities throughbusiness succession consulting
Attracted industries with regional revitalization projects

Acted to support the establishment of a foundation
with the main goal of supporting scholarships
Attracted universities with regional revitalization projects

Created employment opportunities through regional
revitalization projects
Abolished the mandatory retirement system andestablished a housing allowance for employees to live
close to work with the aim of reducing the stress from commuting

Increased the number of female consultants
Increased the number of female managers throughimpartial assessment of ability
Provided consulting for solar power generation and wind power
generation projects

Dividends and shareholder incentives
Dividends per share

Shareholder incentives

50 yenIncluding a commemorative dividend of 5 yen
Fiscal year ending in December 2020: 53 yen (forecast)First half of fiscal year

45.0%

End of fiscal year

Dividend payout ratio

35.7%
33.0

19.0

(unit: yen)

Dividend increase for the 9th 53.5%(forecast)consecutive fiscal year
38.3%

33.0

(forecast)

25.0
20.0

11.0

14.0

17.0

Fiscal Year 2017(27th period)

Fiscal Year 2018
(28th period)

Fiscal Year 2019(29th period)(forecast)

One of the following shareholder incentives shall be presented to shareholders who possess 30,000
shares or more that are recorded in the shareholder register as of the end of December 2019.
Shareholder
incentive item
numberFiscal Year 2020
(30th period)

Shareholder
incentive item
numberA

The UKAI Group
common meal certificate
30,000 yen(1,000 yen per ticket x 30)

B

Ukai special selectSukiyaki beef
worth 30,000 yen

Japan 72 bases

Hokkaido

Zaisan Networks Shizuoka Co., Ltd. (Iwasaki Tax Corporation)
Aim Nakano Accounting Co., Ltd. (ARIASU ZEIRISIHOUJIN)
Zaisan Networks Nagoya Support (Meinan Consulting Network)
Aoyama Zaisan Networks Mie Support (Midland Management Group Mie)

Aoyama Zaisan Networks Hokkaido Support (IKEWAKI TAX, ACCOUNTING & CONSULTANTS GROUP)
Nihon Shisan Soken Co., Ltd. Sapporo (Mitsunari Accountant Office)Sample images

Shareholder
incentive item
numberAoyama Zaisan Networks Aomori Support (Konda Accounting Office)Aoyama Zaisan Networks Sendai Support (Asahi Accounting Office)
MIRAI Tax Corporation
Aoyama Zaisan Networks Yamagata Support (Yutaka Licensed Tax Accountant’s Corp)
Zaisan Networks Fukushima Co., Ltd. (Aozora Tax Corporation)

Kanto
Aoyama Zaisan Networks Ibaraki Support (Masuyama Accounting Office)Kujirai Tax Corporation
Zaisan Networks Tochigi Co., Ltd. (Tajima Accounting Office)Zaisan Networks Motegi Co., Ltd. (MOTEGI tax consultant office)Hikari & Co.
Aoyama Zaisan Networks Saitama Co., Ltd. (CWM Research Institute)
Aoyama Zaisan Networks Kanto Chuo Support (MMG Tax Corporation)
Nihon Shisan Souken Co., Ltd.
Aoyama Zaisan Networks Denenchofu Support (Saito Tax Corporation)
Nihon Mirai Accounting & Tax Co.
Zeimu Sogo Tax Corporation
eclat Consulting
Nakamura Certified Public Tax Accountants Office
Humannetwork Inc. (Tokyo kaikei Partners Inc.)
Hori Yoshihiro Certified Public Accountant Office
Hisakawa Hidenori Certified Tax Accountant Office (Hara Hisakawa Tax and Accounting Corporation)
SEMS Inc. (Shimizu Certified Tax Accountant Office)Mountain Co., Ltd. (General Management Service Tax Corporation)
Kamekawa Takayuki Certified Tax Accountant Office
Kagayaki Zaisan Networks Co., Ltd. (Kagayaki Tax Corporation)
Aoyama Zaisan Networks Yokohama Support (YAMADA SYNTHETIC OFFICE)Ai Partners Tax Corporation
Masatoshi Yoshikawa Certified Tax Accountant Office
Oyama accounting Co., Ltd (Rita Tax Corporation)
Top Accounting Firm & co
Koyama Yoshiaki Licensed Tax Accountants
Yokohama Saiwai Tax Corporation

Chubu
Sample images

The UKAI Group common meal certificate may be used at each shop listed on the UKAI web site (https://www.ukai.co.jp/).

C

Facility use tickets fromthe Kato Pleasure Group
30,000 yen(1,000 yen per ticket x 30)

5

List of AZN nationwide network members (as of March 1, 2020)

TohokuSpecific results of our SDG initiatives

Fiscal year ended in December 2019:

Our growing global network
We have established a nationwide network in Japan that includes leading tax accounting firms and accounting offices. Through this network, we provide
consulting services to customers across Japan. As part of our efforts to expand internationally, we have established overseas subsidiaries in the United States,
Singapore, and Indonesia. Going forward, we will continue working with top overseas partners and enhance our network both at home and abroad.

Sample images‌ Facility use tickets from the Kato Pleasure Group may be used at all facilities listed on the management facility page of the
Kato Pleasure Group web site (https://www.kpg.gr.jp/store/).
(Limited to management facilities within Japan except for the online shop)

Tsubasa M&A Partners (Tsubasa Tax Corporation)
Aozorakeiei Tax Corporation
Aoyama Zaisan Networks Kanazawa (HATAKE Management Group)
Kimura Business Succession Brain Co., Ltd. (KIMURA KEIEI BRAIN CO., LTD.)
Nochide Kaikei Tax Corporation
Aoyama Zaisan Networks Fukui Support (Uesaka Consulting Firm)
Zaisan Networks Nagano Co., Ltd. (Nozomi Tax Corporation)
Mas Networks Co., Ltd. (The Narusako Accounting Firm Group)
Misawa property consulting Co. (Misawa Accounting Group)
MMPC Consultants Corporation (MMPC Tax Corporation)

Kinki
Zaisan Networks Kyoto Co., Ltd. (SHINKEIEI SERVICE SHIMIZU Tax Co.)
Aoyama Zaisan Networks Kyoto Nijo Support (HIROSE LICENSED TAX ACCOUNTANT)SMO Corporation (Teruyoshi Sakon Tax Accountant Office)Zaisan Networks Osaka Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)
Seki Soken Zaisan Partners Co., Ltd (AZ TAX Tax Corporation)
Shibata Business Consulting Co., Ltd. (SBC Partners Tax Corporation)
Zaisan Networks Hyogo Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)
Aoyama Zaisan Networks Wakayama Support (Nishioka Accounting Office)

Chugoku
Aoyama Zaisan Networks Shimane Support (Chikashige Tax Office)Ikeda & Company Inc.
OKAYAMA SOUKEN Consulting Co., Ltd. (OKAYAMA SOUKEN Tax Corporation)
Hikasa Accounting Co., Ltd. (Hikasa Accounting Office)Ishii Consulting Co., Ltd. (Ishii Tax Accounting)
Kato Hitoshi Certified Tax Accountant Office
Tax Accountants’ Corporation Wakamiya & Partners

Shikoku
Zaisan Consultants Tokushima Co., Ltd. (M.A.S. AGENT GROUP)
Midori Zaisan Consultants Co., Ltd. (Midori Tax Corporation)
Nonaka Keiei Corporation (Nonaka Management Consulting Office)

KyushuAoyama Zaisan Networks Kyushu Co., Ltd. (Shinohara Ueda Tax Corporation)
Sasaki Soken Co., Ltd. (Nishi Nihon Tax Corporation)
Satsuki Partners Co., Ltd. (Satsuki Hisadome accounting firm)
Aoyama Zaisan Networks Saga Support (MOROI Accounting Firm)
Aoyama Zaisan Networks Kyushu Co., Ltd. Nagasaki Branch (Chuo Sogo Accounting Office)
IDEA Research Institute Consulting Co., Ltd. (IDEA Tax Corporation)
Zaisan Networks Okinawa Co., Ltd. (PS Accounting Office)Overseas
Overseas subsidiaries
Aoyama Wealth Management Pte. Ltd. (Singapore)
PT. Aoyama Zaisan Networks Indonesia (Indonesia)
Aoyama Zaisan Networks USA, Inc. (United States)

Overseas partners
Hong Kong investment consulting partner
Major Indonesian industrial conglomerate
American property management partner
American real estate partner

Expanding network to
Asia and North America
6Executives (from March 27, 2020)

Corporate Data (as of December 31, 2019)
Name of Company

Aoyama Zaisan Networks Company, Limited

Head Office

3F Aoyama Tower Place, 8-4-14
Akasaka, Minato-ku, Tokyo 107-0052
Tel. +81-3-6439-5800

Incorporated

September 17, 1991

Capital stock

1,143.30 million yen

Business line

Individual property consulting,business succession consulting andreal estate solutions consulting

Number of employees(Group)236

Consolidated
subsidiaries

7 companies including Aoyama
Estate Co., Ltd., Nihon Shisan Soken
Co., Ltd., Aoyama Zaisan
Investments Co., Ltd. and Aoyama
Zaisan Networks Kyushu, Co., Ltd.

Name

Masazumi Hasumi

Masazumi Hasumi
Masayuki Yagi
Takeshi Matsuura
Seido Nakatani
Shinji Shimane
Takaomi Ogawa
Hideo Matsuda
Shintaro Hashiba
Haruo Shimada
Keiji WatanabeMichihiro Nagasaka
Hiroyuki Fujita
Hisao Nakatsuka
Hiroaki Rokugawa

Notes for Shareholder

Stock Overview (as of December 31, 2019)
Number of shares in issue
Number of shareholders
Major Shareholders (Top 10)

President
Director, Managing Executive Officer
Director, Managing Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Outside Director
Outside Director
Outside Director
Outside Auditor (standing)
AuditorOutside Auditor

12,114,100
5,510

Fiscal year

January 1 to December 31

Shares held

Shareholding ratio

Base date for the determinationof shareholders with year-end
dividend entitlements
Base date for the determinationof shareholders with interim
dividend entitlements

1,226,600

10.12

General meeting of shareholders

in March

Administrator of the shareholder
registry/Account management
institution for special account

Mitsubishi UFJ Trust and Banking Corporation

Contact

Mitsubishi UFJ Trust and Banking Corporation,
Stock Transfer Agency Department
1-1, Nikko-cho, Fuchu-shi, Tokyo
Tel. 0120-232-711 (toll-free, Japan only)
Mailing address: P.O. Box 29, Shin-Tokyo
Post Office 137-8081
Mitsubishi UFJ Trust and Banking Corporation,
Stock Transfer Agency Department

Yasuo Takano

665,800

5.49

Trust & Custody Services Bank, Ltd. (pension trust account)

570,800

4.71

Japan Trustee Services Bank, Ltd. (trust account)502,600

4.14

Nihon M&A Center Inc.

500,000

4.12

Mutsumi Shimada

210,000

1.73

Capital Asset Planning, Inc.

200,000

1.65

MSIP CLIENT SECURITIES

178,200

1.47

NORTHERN TRUST CO. (AVFC) RENORTHERN TRUST (GUERNSEY) LIMITEDRE GGDP RE: AIF CLIENTS 15.315
PERCENT NON TREATY ACCOUNT

135,000

1.11

Taisei Co., Ltd.

110,000

0.90

December 31
June 30

Stock exchange listings

TSE Second Section

Public announcements

To be announced on the Company’s website(For reference)
1. ‌Shareholders’ address changes, repurchase requests, and such other procedures, as a rule, arefilled with the account-administrating institutions where shareholders have their accounts(securities companies, etc.). Shareholders are requested to contact their account holding
securities companies, etc., for information. Shareholders are reminded that application filings
cannot be made with the administrator of shareholder registry (Mitsubishi UFJ Trust and Banking
Corporation).
2. ‌Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trust and Banking
Corporation, Head Office Branch.